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#TECH: Consumers' trust in e-commerce deepens

New Straits Times logo New Straits Times 25/9/2020 BOTS team
a man wearing a blue shirt: Ian Ho © Provided by New Straits Times Ian Ho

KUALA LUMPUR: The continued pandemic may have reduced traditional businesses' income, but things are absolutely on the opposite side for e-commerce.

According to e-commerce platform Shopee, 2020 has so far been a major breakthrough for e-commerce as Malaysians are propelled to go online-first for branded and premium purchases.

This is based on their purchasing habits, which is contrary to the notion that consumer spend has weakened.

Shopee, for instance, is seeing demand climb across all categories on its platform, with the most notable change recorded for brands and retailers in the mid and upper segment.

Shopee's regional managing director, Ian Ho, said demand has accelerated for e-commerce this year and the company sees a parallel increase in the level of trust and comfort that people have with online shopping.

"These developments signify new heights for the e-commerce industry. As we work closely with brands and retailers to capture growth, we see many successful campaigns created for our partners. Trusted brands such as Samsung have broken records in 2020, recording up to RM46,000 in a single transaction, among many other achievements," he said.

INCREASED TRUST

In addition to regular personal and household items, Shopee said there is also a growing confidence and comfort in purchasing premium and branded items priced RM3,000 and above on its platform.

This shift is reflected in what users are searching for and buying on the platform.

The company said in recent months, most popular keywords on Shopee are iPhone, laptop, washing machine and smart TV while bestsellers include Apple MacBook Pro, Bosch Built-in Dishwasher and Delonghi Coffee Machine.

It said these changes are driven by the 100 percent authenticity guarantee provided by Shopee Mall.

Digital infrastructure and adoption have always been growing steadily in states like Perlis, Kedah, Sarawak, Sabah and Labuan, but Shopee noted that the use and familiarity with e-commerce accelerated rapidly in the outskirts of these states in 2020.

As e-commerce solves the perennial challenge of limited access to consumer goods outside of Klang Valley, Shopee also found that demand for the premium and branded segment multiplied by over 300 times since 2015.

The company said buyers are also seen to be getting more comfortable with the entire digital ecosystem as many have converted from using offline payment methods to ShopeePay for their checkouts.

DIGITAL OPPORTUNITIES

In line with the increasing popularity of online shopping, Shopee has also launched the 10.10 Brands Festival for retailers to capture the digital opportunities.

"2020 has also pushed more brick-and-mortar brands and retailers including the likes of Billion, Al-Ikhsan, Eco Shop, Machines, Adidas, and Muji to explore a hybrid operating model with e-commerce," said Ho.

To make it easy for retailers, Shopee offers an integrated e-commerce ecosystem such as its strong logistics network, marketing tools, brands and retailers are able to provide consumers a seamless and enjoyable shopping experience. "Besides helping them digitalise, we are reinstating our commitment to assist them in scaling and succeeding online with its annual Shopee 10.10 Brands Festival," said Ho.

"We are encouraged by the growing number of local and international brands on our platform; it just goes to show that there is a place in the digital economy for everyone. Shopee as the enabler of e-commerce trade for brands, retailers and traders will continue to provide the support they need to thrive in this recovering yet competitive business environment. Our annual 10.10 Brands Festival will further serve as a springboard for them to bridge and build connections with buyers," he added.

THE 10.10 SALE

The Shopee 10.10 Brands Festival takes place from today until Oct 10.

Among its offerings include exclusive RM10 deals, free shipping with a minimum spend of RM10 and 100 percent authentic products via the Million Dollar Brands Discounts in-app portal.

On Oct 10, users get to enjoy RM10 free shipping platform-wide as well as deals with big discounts of up to 70 percent from 12AM-2AM. Users stand to win prizes, vouchers and Shopee Coins worth up to RM1,000,000 when they play Shopee Games such as Shopee Farm, Shopee Claw, Shopee Poly and more.

© New Straits Times Press (M) Bhd

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